FDIC: Examiners Must Give Banks Written Notice on Risky Accounts

Agency Makes Guidelines Public After Months of Criticism From GOP Lawmakers

WASHINGTON—The Federal Deposit Insurance Corp. said Wednesday its examiners must give formal written notice to banks when instructing them to cut off accounts for risky customers suspected of violating the law.

The FDIC’s move comes after months of criticism from Republican lawmakers on Capitol Hill. They allege regulators have been too aggressive in pressing banks to avoid controversial customers such as payday lenders and gun dealers over concern that banks could be held responsible for helping facilitating fraudulent activity.